Residents in the Juan Street complex were told to remain indoors and the public to avoid the area bound by Mary, Mayfield and William streets as well as Alex Parade.

Police previously said Sikorsky could have access to firearms.

"We're just asking people in the local area here to stay away," Supt Johnson said.

"We're quite comfortable we've got the situation contained.

"There's not threats involved at all.

"We hope to resolve the situation peacefully tonight."

Supt Johnson would not say if the man had any demands.

Sikorsky fled in a black ute when police attended a residence in Logan on Wednesday as part on an investigation into Ms Beilby's disappearance.

The ute was tracked by police to a nearby housing estate where Sikorsky dumped the vehicle and then left in a silver 2014 Holden Commodore with the Queensland registration 966 WKB, before the body was discovered.

Police are yet to confirm whether it was Ms Beilby's body found in the barrel but have revealed she and Sikorsky are known to each other.